Katong Shopping Centre En Bloc Sale 2023

According to a press release issued by real estate consulting firm Edmund Tie on Tuesday (April 18), the Katong Shopping Centre has been listed for collective sale at a reserve price of S$638 million.

The freehold site at 865 Mountbatten Road is situated in District 15 on a corner land parcel of 86,924 square feet, with Mountbatten Road and Haig Road on each side.

This is Katong Shopping Centre’s third attempt at going en bloc, according to the agent. The reserve price was established at S$630 million on the previous two occasions in 2016 and 2017—both handled by Cushman & Wakefield.

Based on the reserve price of $638 million, it translates into a land rate of $2,277 psf ppr over its existing GFA.

The present structure is made up of a 7-storey podium block, a 5-storey annex block, 425 strata retail and office spaces, and a privately owned parking.

The development’s roughly 280,000 square feet of gross floor area corresponds to a gross plot ratio of 3.223.

Katong Shopping Centre is designated for commercial and residential use at a gross plot ratio of 3.0 under Master Plan 2019.

At its current plot ratio of 3.223, the property may be transformed into a landmark integrated complex with the possibility of turning the residential portion into serviced apartments, pending clearance from the relevant authorities.

Katong Shopping Centre is located in the right location within the popular district 15, and this area has seen some en bloc successful sales in recent years.

Just this year, in February, a joint venture made up of UOL and Singapore Land Group acquired Meyer Park Condo for S$392.18 million.

In 2022, a redevelopment freehold site at Haig Road was sold for S$49.3 million. Two years ago, Ji Liang Gardens and the Malacca Hotel site were snapped up by the developers.

“The amenity-rich East Coast precinct has been one of the most desirable residential enclaves in Singapore,” said Swee Shou Fern, head of investment advice at Edmund Tie. “Katong Shopping Centre presents a rarely available freehold mixed-use redevelopment opportunity in this area.”

“The new integrated development will benefit from its prominent 210-meter dual-street frontage (High visibility), with its commercial component serving a wide catchment of more than 6,000 private housing units within a 500m radius of Katong Shopping Centre,” she said.

High visibility for a commercial development is one of the important factors the developers will consider.

The Amber 45, Shore Residences, The Esta, Silversea, One Amber, and the impending Tembusu Grand are residential projects that are close by. A mixed-use project developed here will be perfect.

Ms. Swee added that there are no restrictions on foreign ownership of the land and that the developer has the option to build serviced apartments for the residential component of the new project, subject to planning permission.

Nearby educational institutions include Tao Nan School, CHIJ (Katong) Primary, Chung Cheng High School, and Canadian International School.

Attractions like Jewel @ Changi and East Coast Park are close to the redevelopment site.

The future Marine Parade MRT station on the Thomson-East Coast Line is around 500 meters away.

The public tender for the Katong Shopping Centre site will close on May 19 at 3 p.m.